• Stegra has closed a €1.4 billion financing round led by a Wallenberg Investments consortium, strengthening equity backing for its Boden steel plant.
• The company secured continued support from existing shareholders, second lien lenders and 100% approval from its lender group.
• The financing supports one of Europe’s largest industrial decarbonisation projects, with implications for EU supply security and green steel competitiveness.

Swedish green steel project secures fresh capital

Stegra has closed its €1.4 billion financing round, giving the company fresh equity support as it works to bring near-zero emissions steel to market.

The round is led by a Wallenberg Investments consortium. It includes existing investors IMAS and Temasek, alongside new investors Bolero and SEB-Stiftelsen.

The deal was first agreed in principle in April 2026. It remained subject to approvals, including customary regulatory clearances. Stegra has now completed the process.

The financing arrives at a critical stage for the company. Stegra is building its flagship green steel plant in Boden, northern Sweden. The project aims to replace coal-based steelmaking with lower-carbon production methods. It also sits inside a wider European industrial policy push.

For investors, the capital raise is more than project funding. It is a test of whether large-scale industrial decarbonisation can attract patient capital during a tougher financing cycle.

Broad investor base backs Boden plant

A large group of existing shareholders continued to invest in the company. They include Altor, which will become Stegra’s second largest shareholder. Other backers include Hy24, Just Climate, AMF, AP2, Climate Infrastructure Fund, Kallskär, Kobe Steel, Lingotto Innovation, Scania, Schaeffler, Security Trading, Stena Metall Finans and Swedbank Robur.

A group of Stegra’s second lien lenders, led by AIP Management, will also support the project as direct equity investors.

The lender group has approved the financing in full. Stegra said all banks participating in its financing package continue to support the project. The company will also have access to undrawn debt facilities established under its 2024 financing.

“We are grateful for the support for the work we are doing in bringing near zero emissions steel to the market from both new and existing investors, as well as from lenders. It’s a strong sign of confidence in our business case and the project,” said Henrik Henriksson, CEO of Stegra.

The company said the new round leaves it with a higher equity ratio. It also strengthens the balance sheet as construction activity in Boden increases.

“We close this financing round with a higher equity ratio and a stronger and more resilient financial position for the company. We welcome the increased Swedish ownership through the Wallenberg Investments-led consortium and the continued support from the Swedish National Debt Office and SEK which remain committed to previously agreed facilities and have worked constructively with different stakeholders during the funding process”, says Henriksson.

RELATED ARTICLE: Stegra Secures $41 Million from Sweden to Support Net Zero Steel Project

Industrial policy and supply security move into focus

Stegra is also supported by funds from the EU Innovation Fund and the Swedish Energy Agency. That public backing places the project within Europe’s broader strategy to defend industrial competitiveness while cutting emissions.

Steel remains one of the hardest sectors to decarbonise. It is also central to supply chains for buildings, transport, energy infrastructure and manufacturing. As a result, green steel has become a strategic issue for governments, industrial buyers and investors.

For the EU, projects such as Boden carry added importance. They support climate targets, but they also address supply security. Europe wants to reduce reliance on higher-emission imported materials. It also wants to keep industrial value chains inside the region.

Håkan Buskhe, Head of Special Investments at Wallenberg Investments and incoming board member of Stegra, framed the investment in those terms. “We are pleased that this transaction is now closed. Together with Bolero, IMAS, SEB-Stiftelsen and Temasek, as well as Altor and other new and existing investors, we will now work closely with the Stegra team to complete and commission the plant in Boden. This large-scale green project represents an important step in Sweden’s competitiveness and the EU’s security of supply.”

What executives and investors should watch

Stegra is now ramping up construction activities in Boden. During this phase, the company said the project timeline is under review.

That detail will matter to corporate buyers, lenders and investors. Green steel projects require major capital, stable policy support and clear demand from customers willing to pay for lower-carbon materials.

For C-suite leaders, the financing shows that industrial decarbonisation is moving from climate ambition into balance sheet execution. Capital structure, lender confidence and public funding now sit at the centre of the transition.

For investors, Stegra’s round points to a wider shift. Climate infrastructure is no longer confined to power generation. Heavy industry is becoming a core asset class for transition finance.

The Boden project still faces delivery risk. Yet its investor base, public support and lender approval give it a stronger footing. If commissioned successfully, it could help set the commercial model for green steel in Europe and beyond.

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